Question

In: Operations Management

" The characteristics of the restaurant market that made it difficult for a reservation system to...

" The characteristics of the restaurant market that made it difficult for a reservation system to work were fragmentation and a lack of computers and technology. Many restaurants are locally owned and small with a lot of geographical differences. Implementing a system that was affordable and meets all the needs of these restaurants would be difficult. Restaurants are also not tech-savvy and don't even have a computer on site meaning they would have issues running a reservation software "

your opinion please

If we were talking in times of the case study where things were still starting out, any restaurant that would be willing to take the risk and have the competitive edge against their competitors. The fruit that would bear from the promise of the SaaS is not only conceptually advanced and promising, but also solidifies the restaurant's business as well. Customers would be impressed, pleased with the convenience, and possibly even intrigued at the system that is really for their benefit.

your opinion please

Restaurants would prefer software as a service model because its cheap, simple to use, and does not require upkeep. It is simple for restaurants to hire a third-party company to create an app that would allow users to book reservations from their phones. This platform could also make it easy for restaurants to advertise coupons and special offers.

your opinion please

Solutions

Expert Solution

The idea of a restaurant is to serve good food to people. Being tech-savvy is not one of the requirements for them. The cost involved with employing a reservation software would be an unnecessary expense for the local and small establishments. These restaurants work on a limited budget and all the efforts go into making a robust business and loyal customers.

A well-built and easy to use SaaS application would definitely help restaurants gain an advantage over its competitors, however, the cost would still be there and risk is involved. Small restaurant owners would not be willing to invest if they see a lot of effort and time being invested in it.

Restaurants starting out may want to invest in a SaaS application for a reservation software as they are owned by millennials who have a knack for technology and have had a first-hand experience using it. They have used similar apps which offer similar services and they would be interested to be able to offer those services to their customers.


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